| /15/2008
1:30 PM: EUR/$..1.5432 $/JPY..104.88 GBP/$..1.9445
$/CHF..1.0578 AUD/$..0.9378 $/CAD..1.0015
USD Shrugs off Soft Data
The dollar was initially softer against the euro
and yen in the Thursday session following soft
US economic reports earlier in the morning. Weekly
jobless claims increased to 371k, versus 365k
in the previous week. The NY Fed manufacturing
survey deteriorated to a reading of minus 3.23
in May, versus 0.63 in April. Meanwhile, industrial
output in April declined by more than expected,
posting a 0.7% decline versus a 0.3% increase
while capacity utilization fell to 79.7% from
80.5% a month earlier. The May Philadelphia Fed
business index improved to -15.6, better than
estimates for an improvement to -19.0 from -24.9
from April.
The economic calendar for Friday consists of
April building permits, housing starts, and the
May University of Michigan sentiment survey.
Euro Initially Higher on Growth Data
The euro climbed above the 1.55-level overnight,
rising to 1.5546 against the greenback. The catalyst
for the move higher was better than expected economic
reports from the Eurozone. Germany¡¯s
economy expanded at its strongest pace in 12-years,
with Q1 GDP sharply exceeding consensus estimates
at 1.5%, up from 0.3% in the previous quarter
while expanding at 1.8% versus 1.6% a year earlier.
Inflationary pressures in Germany also eased.
The final reading for April CPI declined by 0.2%
versus a 0.5% increase in March and down to 2.6%
from 3.1% in the previous year. The April HICP
declined by 0.3% from 0.5% a month earlier and
lower to 2.6% versus 3.3% a year earlier.
Data also revealed the Eurozone economy expanded
by 0.7% in Q1, beating calls for a slight increase
to 0.5% from 0.4% in the prior quarter, while
the annualized growth rate held steady at 2.2%,
defying calls for a decline to 1.9%. The reports
reinforce sentiment that the ECB will likely keep
interest rates unchanged for the remainder of
the year while maintaining its tightening bias.
EURUSD relinquished its earlier gains by the
New York afternoon, pulling off to 1.5420. Support
begins at 1.54, followed by 1.5360 and 1.5330.
Additional floors will emerge at 1.53, backed
by 1.5270 and 1.5240. On the upside, resistance
starts at 1.5450, followed by 1.55 and 1.5540.
Subsequent ceilings are seen at 1.5570 and 1.56.
|
